Govt issues one more T-bill

The government has introduced one more short-term treasury bill (T-bill) to manage its cash in a better way, officials said.
First auction of the newly-introduced 14-Day T-bill will be held at the Bangladesh Bank (BB) today (Wednesday) as per the decision of the Ministry of Finance (MoF).
"The government is expected to borrow Tk 3.0 billion through the new T-bill auction," a BB senior official concerned told the FE on Tuesday.
The short-term T-bill will help the government to handle short-term cash management properly, the official added.
On October 03, the MoF officials disclosed at a meeting with the primary dealer (PD) banks that the government will introduce the 14-Day T-bill shortly.
The PD banks welcomed the government's latest move, saying that it would help create a new window for short-term investment by the commercial banks.
"It will also help increase opportunity of investment in risk-free government securities," a senior official of leading PD bank noted.
BB earlier selected 20 PD banks to deal with the government securities in the secondary market.
Currently, three T-bills are being transacted through auctions to adjust the government's borrowings from the banking system. The T-bills have maturity periods of 91 days, 182 days and 364 days.
The T-bills are short-term investment tools, issued through auctions and conducted by the central bank on behalf of the government. Furthermore, five government bonds with tenures of two, five, 10, 15 and 20 years respectively are traded in the money market.
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